The median gross sales worth for a single-family dwelling offered in Massachusetts eclipsed the $600,000 barrier for the primary time final month, as rising mortgage charges have confirmed to be no match for an ongoing imbalance between tight provides and strong demand.
The Warren Group, a Peabody-based supplier of actual property and banking knowledge, not too long ago reported that the median worth for a single-family dwelling offered in Massachusetts was $610,000 final month, up 9.9% from the June 2021 median of $555,000 — and a whopping 38.6% greater than it was two years in the past ($440,000).
Gross sales, nevertheless, are down — a mirrored image of much less obtainable stock. The 6,182 single-family houses offered in Massachusetts final month represented an 11.5% decline from the comparable month a 12 months in the past, when 6,987 houses had been offered.
Tim Warren, CEO of The Warren Group, famous that it has been solely 14 months for the reason that statewide median dwelling sale worth eclipsed $500,000.
“I doubt we have seen the tip of it,” Warren mentioned, in an announcement. “Consultants preserve speculating that with the current hike in rates of interest that costs may plateau within the close to future, however I am unsure we’re on the tipping level simply but.”
Over the previous 12 months, the typical fee on a 30-year mortgage — the most typical mortgage used for preliminary dwelling purchases — has elevated from a traditionally low 2.98% to five.52%, in keeping with Freddie Mac.
For a $400,000 mortgage, that is a distinction of almost $600 ($2,276 vs. $1,682) on a month-to-month cost.
“Value will increase are moderating this 12 months, however they’re removed from flatlining,” Warren mentioned. “There are simply so many patrons and never sufficient houses to go round. I count on potential patrons to proceed paying important premiums within the coming months, even because it will get dearer to borrow cash.”
Potential patrons who’re hoping for reduction by pursuing conventional cheaper condominiums are additionally prone to be dissatisfied.
The median worth for a condominium offered final month in Massachusetts was $539,000, up 10.2% from a 12 months in the past ($489,000) and 34.8% greater than two years in the past ($400,000).
Rental gross sales totaled 2,748 statewide final month, which was an excellent sharper year-over-year decline — 13.8%, or from 3,189 in June 2021 — than was the case for single-family houses.
Warren famous that although condominiums, by and enormous, are cheaper than single-family houses, they’re “nonetheless prohibitively costly for a lot of patrons, particularly as buying energy declines resulting from rising mortgage charges.”
A have a look at the housing numbers for some MetroWest communities follows:
Framingham
Framingham bucked the statewide pattern, because it noticed 79 single-family houses offered final month, up from 77 offered in June 2021. The median gross sales worth was $657,000 for June, up 9.9% from $598,000 in the identical month a 12 months earlier.
There have been 98 condominiums offered within the metropolis lasty month, down from 106 in June 2021. Final month’s median gross sales worth was $260,000, down 1.3% from $263,500 a 12 months in the past.
Natick
Solely 39 single-family houses had been offered in Natick final month, down considerably from the 59 in June 2021. The median gross sales worth for June gross sales was an excellent $900,000, up 12.5% from the June 2021 median of $800,000.
Seventeen condominiums had been offered in Natick final month, down from 20 in June 2021. However their median gross sales worth was $700,000, up a whopping 40.7% from the year-ago determine of $497,500.
Marlborough
There have been 40 single-family houses offered in Marlborough final month, up from 33 in the identical month a 12 months earlier. Final month’s median gross sales worth was $570,000, up 14.2% from the June 2021 median of $499,000.
There was a obvious alternative for entry-level patrons within the metropolis’s condominium market. Thirty-four condominiums had been offered in Marlborough final month, twice as many as in June 2021. And the median gross sales worth was a modest $180,000, down greater than half from the June 2021 median of $365,000.
Milford
There have been 24 single-family houses offered in Milford final month, down from 28 offered in June 2021. The median gross sales worth final month was $559,000, up 12.5% from the year-ago determine of $497,000.
Fourteen condominiums had been offered on the town final month, up from 11 offered in June 2021. The median gross sales worth was $404,500, up 7.3% from the year-ago median of $377,000.
Franklin
Gross sales of single-family houses dropped 31% in Franklin throughout June, from 58 final 12 months to 40 this 12 months. The median worth for these offered final month was $687,500, up 1.9% from the year-ago median of $675,000.
Twenty condominiums had been offered in Franklin final month, down from 22 offered throughout June 2021. The median gross sales worth rose 13.7%, 12 months over 12 months, from $397,000 final 12 months to $451,483 this 12 months.
Sudbury
There have been 38 single-family houses offered throughout June in Sudbury, down 24% from the 50 offered in the identical month a 12 months in the past. The median gross sales worth for a single-family dwelling in Sudbury, which eclipsed $1 million for the primary time final summer time, is now greater than $1.5 million — $1,519,000 final month. That is a 39.3% leap from the June 2021 median of $1,090,750.
Twelve condominiums had been offered in Sudbury final month, in comparison with 13 in June 2021. Their median gross sales worth was $770,335, up 30.6% from the year-ago median of $589,900.
Ashland
There have been 25 single-family houses offered in Ashland final month, down from 31 in June 2021. The median gross sales worth for a house offered on the town final moth was $600,000, down 4% from the year-ago determine of $625,000
Twelve condominiums had been offered in Ashland throughout June, down from 20 in the identical month a 12 months earlier. However their median gross sales worth rose sharply — 42.6% — from $430,000 to $613,000.
Hopkinton
There have been 29 single-family houses offered in Hopkinton final month, up from 21 in June 2021. The median gross sales worth surpassed $1 million — it was $1.05 million — and that was 15.4% greater than the June 2021 median gross sales worth of $910,000.
13 condominiums had been offered in Hopkinton throughout June, yet another than had been offered in the identical month a 12 months in the past. The median gross sales worth was $771,000, up a sturdy 73.5% from the year-ago median of $444,500.
Holliston
There have been 28 single-family houses offered in Holliston final month, down from 34 in June 2021. The median gross sales worth was $732,000, up 11.8% from the year-ago median of $655,000.
Twenty-two condominiums had been offered in Holliston final month, up from 20 in June 2021. Their median gross sales worth was $477,500, up 20.9% from the year-ago median of $395,000.
Bellingham
Twenty-four single-family houses had been offered in Bellingham throughout June, up from 19 in the identical month a 12 months in the past. The median gross sales worth was $404,500, which was a decline of seven.6% from the year-ago median gross sales worth of $438,000.
There have been two condominiums offered on the town final month, down from six in June 2021. No month-to-month median gross sales worth was given, though 12 months up to now it is $380,750, a 3.6% achieve from the six-month median of $367,500 a 12 months in the past.
This text initially appeared on MetroWest Day by day Information: MA median dwelling worth surpasses $600K for first time in June
